MSI enjoyed strong performance in its gaming laptop business but now sales are weakening as the company is facing tough competition from other firms like Acer and ASUS, who are starting to expand into the gaming laptop market. As a result, MSI has to be satisfied with lower margins and is driving up marketing efforts to maintain its volume.
MSI's motherboard business continued to suffer from losses in the first half due to fierce pricing competition from Asustek and Gigabyte Technology. But the company is seeing stable profits from the graphics card business and its share in the high-end graphics card market has been rising.
To defend its gaming notebook market share, MSI has been offering price-cut promotions and raising its marketing expenses. Currently MSI's mainstream gaming notebook product price range is NT$32,000-50,000 (US$977-1,526) and Asustek, which used to mainly focus on NT$30,000 models, has recently started expanding into the NT$40,000-50,000 range, creating pressure to MSI.